The court ruled 5-4 that President Donald Trump could not remove Federal Reserve Gov. Lisa Cook, sending the dispute back as Trump said he would take further action.
By yourNEWS Media Newsroom
The Supreme Court on Monday rejected President Donald Trump’s effort to remove Federal Reserve Gov. Lisa Cook, ruling 5-4 that the president could not fire her from the central bank’s Board of Governors.
Chief Justice John Roberts wrote the majority opinion, saying the administration’s arguments would weaken the legal protections Congress established for Federal Reserve governors.
“To accept any of those arguments would in effect transform the Federal Reserve’s for-cause protection into at-will employment,” Roberts wrote.
Justice Clarence Thomas dissented.
The ruling came after Cook sued Trump, the Federal Reserve Board of Governors and Federal Reserve Chairman Jerome Powell following Trump’s decision to fire her last summer.
The Trump administration had asked the Supreme Court to intervene after lower courts blocked Cook’s removal. Solicitor General John Sauer argued in a petition that lower courts had improperly interfered with the president’s authority to remove Federal Reserve governors for cause.
A federal appeals court had previously rejected Trump’s effort to fire Cook. The D.C. Circuit Court of Appeals ruled 2-1 that Cook could remain on the Federal Reserve Board, allowing her to participate in last month’s interest rate meeting.
The dispute centered on allegations involving Cook’s mortgage filings. Housing regulator Bill Pulte sent a criminal referral alleging that Cook committed mortgage fraud by listing an out-of-state Atlanta condominium as her “primary residence” shortly after taking out a loan on her Michigan home, which she also allegedly designated as her “primary residence.”
Pulte later sent a second criminal referral involving a third property.
Cook’s attorneys argued that allowing Trump to remove her could destabilize the Federal Reserve and create risks for inflation policy.
Trump responded to the Supreme Court ruling Monday, saying the case had been returned on procedural grounds and that his administration would act again.
“The Cook Lawsuit, having to do with her suitability in sitting on the Board of the Federal Reserve, was sent back by the Supreme Court on a strictly procedural basis, we will take appropriate action immediately to make sure that someone who has committed wrongdoing will not be making vital decisions concerning the Welfare of the United States of America! Thank you for your attention to this matter. President DONALD J. TRUMP” Trump said.
The ruling leaves Cook in place for now and continues a legal battle over presidential authority, Federal Reserve independence and the standard required to remove a governor from the central bank’s board.
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